A PERISHABLE INVENTORY MODEL WITH UNKNOWN TIME HORIZON

Traditionally, the time (planning) horizon over which the inventory for a particular item will be controlled is often assumed to be known (finite or infinite) and the total inventory cost is usually obtained by summing up the cost over the entire time horizon. However, in some inventory situations the period over which the inventory will be controlled are difficult to predict with certainty, as the inventory problems may not live up to or live beyond the assumed planning horizon, thereby affecting the optimality of the model. This paper presents a deterministic perishable inventory model for items with linear trend in demand and constant deterioration when time horizon is unknown, unspecified or unbounded. The heuristic model obtains replenishment policy by determining the ordering schedule to minimize the total cost per unit time over the duration of each schedule. A numerical example and sensitivity analysis are given to illustrate the model